SanDisk Drops After Sales Forecast Falls Short of Estimates

April 20 (Bloomberg) -- SanDisk Corp., which makes memory
chips used in mobile devices, fell the most in three months
after forecasting second-quarter sales that fell short of some
analysts’ estimates.

The Milpitas, California-based company said revenue will
decline to about $1 billion, plus or minus $50 million. Analysts
on average had estimated sales of $1.28 billion, according to
data compiled by Bloomberg.

Chip production at SanDisk and its rivals is outpacing
demand, causing prices to fall, Chief Executive Officer Sanjay
Mehrotra said on a conference call with analysts yesterday. Some
of the company’s customers also ordered fewer chips for mobile
phones than SanDisk had predicted, he said.

SanDisk shares fell 11 percent to $35.91 at the close in
New York, for the biggest decline since Jan. 26. The stock has
dropped 27 percent this year.